In a rather surprising turn of events made last week, it would appear that Verizon would be the new owner of Yahoo, in a deal worth approximately $4.8 Billion.
The agreement was supposedly announced before the markets open and will also radically change the path of Yahoo’s future, which has seen its fair share of failed reconstructions by numerous other owners. Verizon is said to have won the bid contending against the likes of private equity firm TPG, a group led by Quicken Loans’ Dan Gilbert, not to mention AT&T.
Verizon already paid a hefty sum in 2015 when acquiring AOL and the company sees this as an opportunity to strengthen the telecommunication company’s advertising and content offerings. As such, Yahoo’s Brightroll technology will be the main focus point by Verizion with possible elements from the company’s Maven’s product.
Those interested in bidding for Yahoo were asked to submit final proposals last week. During the company’s earnings call, Marissa Mayer, CEO of Yahoo declined to announce a deal, rather, stating that the board intends to “deliver shareholder value with this process, and that the “independent strategic review committee continues to manage this effort and we’re making great process.”
With Verizon’s acquisition of Yahoo, it would also appear that this is the end of Mayer’s tenure as CEO. Nonetheless, if she does give up her role in the company, it’s estimated that she’ll not do so empty handed, but take a $55 million severance package.
Initial bids by Yahoo first opened in February as part of an “aggressive strategic plan” suggested by the board amid fighting by activist shareholders. While Mayer’s team implemented cost cutting measures, which included laying off 15 percent of its workforce, it was part of the plan to make the company more appealing to potential bidders. Verizon was always considered a front-runner for the move, even going so far as to use AOL CEO Tim Armstrong to entice the company.
It should be noted that even though Verizon now owns Yahoo, they only own the core business. Whomsoever remains in charge at the company will also be taking care of a 35.5% stake in Yahoo Japan and a 15% holding in Alibaba.